Chevron is looking to expand its global gas portfolio from Argentina to the Mediterranean to meet growing demand from buyers concerned about energy security due to the crisis in the Middle East, President of Global Gas Freeman Shaheen said.
Global gas markets have experienced two major disruptions in the past four years as the Ukraine war in 2022 and the Iran conflict this year cut off supplies from top producers Russia and Qatar and drove liquefied natural gas prices higher.
"What we're seeing from this crisis is that it just reinforces the need for diversity — diversity of supply and diversity of different contracting structures," Shaheen said, adding, "and not leaving yourselves susceptible to a spot market that's not really as liquid as crude and products."
Chevron will have about 20 million tonnes per annum of LNG supply capacity comprising 16 million tonnes of net gas production from its projects and four million tonnes contracted from the US Gulf Coast that commenced in February this year and will ramp up over the next few years in line with agreements.
"We're looking to continue to expand that portfolio," Shaheen said in an interview on the sidelines of the Gastech conference in Bangkok.
"There's great prospects out of Argentina with the development of crude and gas in that marketplace. The East Mediterranean is a very exciting area for us as well."
He also sees further opportunities in Australia and Africa, provided the projects offer the right capital, fiscal and regulatory terms, adding that the US-Iran war has reinforced the need for a diversified gas portfolio.
Shaheen did not elaborate on where in Africa, Australia or the eastern Mediterranean the company might expand. In June, Chevron won approval to become operator and lead gas exploration in an offshore block off Greece, expanding its presence there.
However, these opportunities have to be weighed against Venezuela, where Chevron and its partners would invest more than $7 billion to more than double oil output by 2031.
"I've been hearing that Venezuela has a lot of capital that's going to have to go that way coming up," Shaheen told Reuters.
"Everything is going to get analysed in our project queue and it gets ranked."
Chevron already has significant operations in Australia, running the country's largest LNG project, Gorgon, and the Wheatstone project. A large portion of its Australian supply goes to Japan.
"Japan continues to be our home base, and we have nice structural opportunities into Singapore," Shaheen said, adding that China and Korea remain attractive markets.
In Singapore, Chevron inked a deal in 2024 to supply Sembcorp Industries up to 0.6 million tons per annum of LNG from 2028.
LNG buyers are also changing the way they secure supply, he said, with state-backed importers increasingly willing to sign contracts with portfolio suppliers rather than relying on government-to-government arrangements.
"I'd love to have a deal in India. It's just they're very, very headline-price driven," Shaheen said. "I think India is still evolving. There's going to be great opportunities over time."
(Reporting by Emily Chow and Florence Tan; Editing by Sonali Paul)
